7 Exercise 3-4 Underapplied and Overapplied Overhead [LO3.4) 14.28 points Osborn Manufacturing uses a predetermined overhead rate of $19.90 per direct labor-hour. This predetermined rate was based on a cost formula that estimates $272,630 of total manufacturing overhead for an estimated activity level of 13,700 direct labor hours. The company actually incurred $270,000 of manufacturing overhead and 13,200 direct labor hours during the period, Required: 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period. 2. Assume that the company's underapplied or overapplied overhead is closed to cost of Goods Sold. Would the journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much? Book Print References 1. Manufacturing overhead 2. The gross margin would by by